XRP Posts Santa Claus Rally, Short Sellers Burnt

XRP gained more than 5% on Tuesday and with high buying pressure in the altcoin market, recent fundamentals showed that key whales in the Ripple-based token held onto their assets despite the wider crypto market sell-off last week.

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Prospective bullish catalysts such as the anticipated 2025 launch of an XRP ETF, President-elect Donald Trump, and the January 20 inauguration of a new Securities and Exchange Commission (SEC) administration could cause the holding stance.

The remittance-based token bounced off the triangle’s support trendline around $2.2, and it is currently trying to move higher. Coinglass data indicates that XRP saw liquidations ofΒ  $5 million for the day. There were $1.73 million and $3.5 million in liquidated long and short positions, respectively.

The altcoin has been in a consolidation phase. However, since the RSI showed a pronounced overbought signal at the start of November, the market has been unable to maintain its upward trend and is currently cooling down and consolidating. However, despite being tested earlier today, the $2.2 support level is intact, driving the price higher toward the $3 level. However, a more significant correction toward the $1.5 level would be anticipated if the $2 level were decisively broken.

XRP may rise to test its all-time high resistance at $3.55 if it breaks through the upper boundary of this triangle pattern. On the other hand, a drop below the lower boundary of the trendline might lead to a sharp drop toward the $1.4 support level. If this happens, the 50-day Simple Moving Average (SMA) and the $2 level may be important support levels.

The momentum indicator of the Relative Strength Index (RSI) is marginally above its neutral level, suggesting that bullish momentum is slightly in control. In the meantime, a crossover to bullish dominance is approaching because the Stochastic Oscillator (Stoch) is just below its neutral level.

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ABOUT THE AUTHOR See More
Olumide Adesina
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.
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